Purchases returns/ returns outwards journal-Cash book/ cash receipts and cash payments journal-Purchases journal-General/ journal proper5.Dr. Debtors control a/cCr.Bal b/d 11,000Dishonoured cheques 2,800Credit sales 52,500Bad debts W/O 5000Returns inwards 1600Receipts 31,000Discount allowed 3,400Bal c/d 25,300
66,30066,30027. FINANCIAL STATEMENTS1. Margin =G.P= Sales – Cost*SalesSales20 S = S – (160,000 + 1800,000- 200,000)100 S- 1q,1760,00080 S = 1,1760,000100 S = 17600X 100802. The following balances were r extracted from the books of Masai retailers on 14thJuly 2000Prepare the trading account for the period ended 14thJuly 2000Masai net trading account for the year ended 14thJuly 2000Opening stock30 000Sales 1 000 000 Purchases 800 000(Less) return inwards 20 000(less) return 15 000785 000Net sales 980 000G.A.S815 000Closing stock 80 000C.O.S735 000Gross profit245 000980 000980 000Mark up=GP/COSX100=201/5-1= ¼ x25=GP/980 000=25X980 000/100=Sh.245 0003. Margin;G.P X 100Net sales90,000x 100=33 1/3270,000 R.O.S.T. = Cost of goods soldAverage stock= 180000 115,000=1.6 times
4. Average stock 120,000ROSTO = 3times(a) From ROSTO = cost of sales= COSAverage stock 120,0003 = COS120,000COS = 120,000 x 3 = 360,000(b) From margin, Mark up = 1= 14 – 1 31= GP3 COS1 = GP = 3GP = 360,0003 360,000GP = 120,000Gross Profit = Shs. 120,000(c) From margin = ¼ = GPsalesSales = 4 x 120,000Sales = 480,0005.Bondo tradersTrading accountFor the year ended 31 Dec 20046. -External borrowing e.g. from IMF and World Bank-Solicit for foreign grants/donations/aids from donor countries-Reduce government expenditure through cost-cutting measures-Sale and lease back of public assets-Introducing new taxation of selected goods7.Half Bilha TradersProfit and loss AccountFor the month ended 30thSep, 2009Cost of sales 150000 Gross profit c/d 50000300000Net sales 300000300000Opening 2 000Purchases 46 00048 500Less closing stock 1 50049 000G P c/d 9 40056 400Sales 56 40056 400
ExpensesCarriage outwards 12000Bad debts 30000Wages 25000Rent 15000Net profit 74000156,000Gross profit b/d 150000Discount received 6000156000Net profit 740008. (a) Gross profit(b) Cost of sale = sales – G.P(c) Net profit = G.P – ExpensesMark up = G.P= 2cost of sales 3Margin = 2/2+ 3= 2/5h.p = 2/5x 5,400,000 = 2,160,0005,400,000 – 2,160,000 = 3,240,000= 2,160,000 – 800,000 = 1,360,0009. The following information relates to Mandu enterprises limitedStock (1.1.2009)40000Stock (31.1.2009)60000Purchases500000Margin20%Prepare Mandu Enterprises Limited Trading account for the year ended 31stDecember, 2009MANDU ENTERPRISES LIMITEDTRADING AND ACCOUNTFor the period ended 31stDec, 2009DrShsOpening stock 40000Add purchases 500000COGAS 540000Less closing stock 60000COGS 480000CrShs.Sales 600000
Gross profit 20000600000600000Margin to mark up20% or 1/5=1/5-1= ¼ Gross profit = ¼ x 480000 = 120,00010.11. Mark- up = G.Px100Cos10%=G.PX10096,000GP=9,600Sales=Cost +G.P = 96,000+9600=105,600AtisTrading and loss accountFor the month ending 30-6-2008Opening stock 22,000 Sales 105,600Add purchases 100,000Co GAS 122,000Less c.s 26,000Cos 96,000G.P c/d 9,600105,600 105,600BAL b/d 9,60012.SHAH TRADERSTrading account for the period trading 30thJune 2010Opening stock 65000Sales 280000Add purchases 190000Less sales returns (4200)Less purchases returns (10000) 180000275800Goods available for sale 245000Less closing stock 70000Cost of sales 175000Gross profit c/d 100800
275800275800Gross profit b/d 100800
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